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“That is a method of funding that was yesterday described by the finance secretary, Derek Mackay, as a con.

“Of course, when the First Minister announced her big Scottish growth scheme last year she used different language, she said ‘this is a half billion pound vote of confidence in Scottish business, Scottish workers and the Scottish economy’.

“Now like everyone else in this chamber I would welcome half a billion pounds investment in the Scottish economy if any pennies of it were ever to appear quite soon.

“But I am just curious as to whether the First Minister can explain why when the Scottish Government uses this method to invest in Scotland, it is a ‘vote of confidence’ and when the UK Government does it, it’s a ‘con.’”

Let me explain exactly why the Chancellor of Exchequer’s announcement in the Budget yesterday is accurately described as a con

Nicola Sturgeon

The First Minister stood up and defended why the SNP had branded the pledge a “con” before she was ridiculed in the chamber.

She said: “Let me explain exactly why the Chancellor of Exchequer’s announcement in the Budget yesterday is accurately described as a con.”

Ms Sturgeon was swiftly interrupted by the Conservative benches who burst out laughing and mocked her remark.

The First Minister continued: “I was watching, he stood up, and he said, without qualification, that his Budget would deliver an extra £2billion for Scotland.

“Here is what the Fraser of Allander Institute said yesterday, about the £1.1billion of that which is in the form of financial transactions. ‘It cannot be used to support day to day spending on public services’.

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“So the Chancellor tried to give the impression that this was somehow a big boost to our health service, education system, to public services, to the length and breadth of the country. But as Ruth Davidson knows, that is far from the truth.”

Holyrood will receive its £2billion windfall via the Barnett Formula as a result of spending decisions south of the Border.

It covers four years, including the current year, with £1.1 billion coming from so-called “financial transactions” which are used to underwrite private sector investment.

Ms Sturgeon welcomed announcements on oil and gas, and on VAT as “overdue” but tweeted the extra spending had “much less to it than meets the eye” and would still leave the Scottish Government revenue budget facing a £239 million next year.